10 Money Mistakes I Made (And the Fixes That Worked For Me)

I’ve made some very confident financial decisions that, in hindsight, were...optimistic at best. Like putting a $2,000 vacation on a credit card while convincing myself I’d “just pay it off with next month’s raise.” (Spoiler: the raise didn’t come for another year.) Or co-signing a loan for a friend who meant well—until they ghosted the payments and me.

So, I say this with total empathy: money mistakes are part of the learning curve. But the key difference between people who stay stuck financially and those who gain traction isn’t luck or even income—it’s awareness. And when you know what to look for, you can sidestep the traps that quietly sabotage your progress.

Let’s walk through the 10 money missteps that trip people up—and how you can steer clear with confidence and clarity.

1. Thinking Budgeting Means “No Fun”

Budgeting gets a bad rap—probably because it’s often presented like punishment. But the real purpose of a budget isn’t to strip the joy out of life. It’s to make sure your money is going where you want it to, not just slipping through the cracks.

I once avoided budgeting because I didn’t want to “feel restricted.” But once I actually created one that included things I enjoyed—like date nights and travel—I realized I felt freer. I had permission to spend because I’d already planned for it.

2. Ignoring the Power of “Small Leaks”

Most people worry about the big expenses—rent, cars, tuition—and understandably so. But in many cases, it’s the smaller, repetitive costs that quietly drain your bank account over time.

Things like:

• Subscriptions you forgot you signed up for
• Frequent delivery fees (hello, $4 convenience tax)
• ATM fees from banks that aren’t even yours

These aren’t obvious red flags, which is why they fly under the radar. The fix? Schedule a monthly “money cleanup.” Pull your statements, check for unnecessary repeat charges, and clean house. It’s like flossing for your finances.

According to CNET, the average US adult spends $91 every month on subscription services. That’s over $1,000 a year—on just subscriptions!

3. Treating Credit Cards Like Free Money

This one’s a classic—and with good reason. It’s incredibly easy to fall into the habit of spending on credit as if it’s cash you already have.

Credit cards, when used strategically, can be helpful tools. They offer fraud protection, rewards, and can even help you build credit. But when you start using them to finance a lifestyle you can’t afford, it’s a short walk to long-term debt.

A good rule of thumb? If you can’t pay it off in full when the bill hits, pause. That “just this once” mentality is how most credit card debt starts.

If you’re already in deep? Focus on the highest-interest card first and make extra payments whenever possible. Small, consistent steps go further than you think.

4. Underestimating Lifestyle Creep

You get a raise. You feel good. You celebrate. Then suddenly, your expenses grow right alongside your income—and you’re still living paycheck to paycheck.

Lifestyle creep is sneaky because it feels like growth. You’re upgrading your car, dining out more, maybe moving into a nicer place. But if your savings rate stays flat while your spending goes up, you’re not actually building wealth—you’re just cycling it through faster.

Try this instead: When your income increases, pretend it didn’t. Save or invest the difference for three months. If you still want to upgrade something afterward, go for it. But now, you’re doing it intentionally—not automatically.

5. Not Having an Emergency Fund

I get it—it’s hard to prioritize saving for something you hope never happens. But emergencies don’t wait until you’re ready. Job loss, unexpected medical bills, car repairs—they’re part of the game.

Without a buffer, you’re left relying on credit cards or loans, which only compound the problem.

Start small if you need to—$25 a week adds up to $1,300 in a year. That fund becomes your freedom. It gives you space to breathe when life throws a curveball.

6. Over-Relying on “Future You” to Fix Things

“I’ll save more when I make more.” “I’ll start investing once I know more.” “I’ll pay off the card next month.”

Sound familiar?

The problem is, “future you” is still going to be busy, still figuring it out, and probably dealing with new financial challenges. We tend to idealize the version of ourselves who has more time, more money, more discipline—but that version doesn’t show up magically. You have to build them now.

Take imperfect action. Start with what you have. Your financial future is shaped by your financial habits—today.

7. Assuming Debt Is “Just Normal”

Debt is incredibly common, but that doesn’t mean it has to be permanent.

The problem isn’t just owing money—it’s how you carry it. Interest eats away at your ability to save, invest, and grow your wealth. And emotionally? Debt often carries a silent weight that shapes your decisions in ways you don’t realize.

You don’t have to live debt-free tomorrow. But you do need a plan. List your debts. Rank them by interest rate. Start paying more toward the highest one. Celebrate the wins, even the small ones.

You’re not bad with money if you have debt. But ignoring it won’t make it go away.

8. Not Understanding the Power of Investing Early

This one stings, because the cost of delay is invisible—until it’s not.

I waited longer than I should’ve to start investing because I thought I needed to know everything first. I wish someone had told me: you don’t have to be an expert to get started.

Even small contributions in your 20s or 30s can grow into something meaningful, thanks to compound interest. And you don’t need to pick stocks or time the market. A diversified index fund and a regular contribution schedule are a great place to begin.

9. Avoiding Money Conversations

Talking about money can feel awkward, especially with family, partners, or even friends. But silence creates confusion—and confusion leads to mistakes.

If you’re in a relationship, talk openly about goals, habits, and expectations. If you’re splitting bills with roommates, get it all in writing. If you’re navigating financial boundaries with loved ones, say what you mean with kindness and clarity.

You don’t have to have all the answers. But avoidance is expensive—financially and emotionally.

10. Thinking “More Money” Will Automatically Solve It All

This is the big one.

It’s easy to assume your financial problems are just a result of not having enough—and sometimes, they are. But in many cases, earning more only magnifies the habits you already have.

If you overspend now, you’ll overspend later. If you’re avoiding planning or saving now, more money won’t fix that—it’ll just be moving through a bigger pipeline.

Getting better with money isn’t about perfection. It’s about being intentional, honest, and willing to adjust.

Start where you are, with what you have. That’s always enough.

The Real Flex Is Financial Clarity

Everyone has money habits they’d rather not put on display. You’re not late. You’re not behind. You’re not doomed if you’ve made some questionable financial moves (most of us have). The trick is recognizing the patterns that don’t serve you—and replacing them with ones that do.

Forget trying to be perfect. Be proactive. Learn to course-correct. Have a strategy, not just a wishlist. Build a system that makes good decisions easier and bad decisions harder.

And remember: being good with money isn’t about being born with financial superpowers. It’s about paying attention, getting curious, and giving yourself room to grow.